India's Glenmark Pharma posts Q2 profit on strong demand for chronic drugs

Mankind Pharma

14/11/2024 13:41

Nov 14 (Reuters) - Glenmark Pharmaceuticals  GLEN.NS  reported a second-quarter profit on
Thursday, helped by strong demand for its drugs that treat long-term illnesses.
    The drugmaker reported a consolidated profit of 3.54 billion rupees (nearly $42 million) for
the quarter ended Sept. 30, compared with a loss of 819.5 million rupees a year ago.
    The company had a one-time charge of 3.25 billion rupees in the second quarter of last year,
related to a legal case settlement as well as remediation costs at its manufacturing sites in
India and the U.S.
    Total revenue from operations rose 7% to 34.34 billion rupees during the quarter.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3ML0O9
    
    KEY CONTEXT
    Glenmark Pharma continued to benefit from its strong position in key chronic therapy areas,
including respiratory and dermatology therapeutics, according to its latest annual report. 
    Drugmakers like Glenmark Pharma and its peers continue to benefit from strong domestic demand
for their speciality drugs and those used for treating long-term illnesses.
    The company's peer, Mankind Pharma  MNKI.NS , also beat second-quarter profit estimates due to
strong demand for its drugs that treat chronic illnesses, such as diabetes and cardiovascular
diseases. 
        
    PEER COMPARISON
                                              Estimates (next      Analysts' sentiment      
                                                 12 months)                                 
                    RIC        PE      EV/EB  Revenue   Profit  Mean    # of    Stock to    Div
                                       ITDA   growth    growth  rating  analys  price       yield
                                              (%)       (%)     *       ts      target**    (%)
 Glenmark            GLEN.NS    27.57  15.76   12.89    175.73  Buy         10     1.02       0.15
 Pharmaceuticals                                                                            
 Ltd                                                                                        
 Mankind Pharma      MNKI.NS    44.71  27.24   20.55    13.99   Buy         15     0.95     NULL
 Ltd                                                                                        
 Torrent             TORP.NS    44.86  25.13   12.32    27.73   Buy         27     0.90       0.89
 Pharmaceuticals                                                                            
 Ltd                                                                                        
 Sun                 SUN.NS     34.63  25.59    9.77    14.80   Buy         32     0.91       0.75
 Pharmaceutical                                                                             
 Industries Ltd                                                                             
 
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong
Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock
is trading above the PT
    
    JULY TO SEPTEMBER STOCK PERFORMANCE
    
-- All data from LSEG
-- $1 = 84.4300 Indian rupees

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JULY TO SEPTEMBER STOCK PERFORMANCE    https://tmsnrt.rs/4fLyH6L
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Abinaya Vijayaraghavan)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))